The Dallas Morning News reports the Sherman-based agency, known as TAPS Public Transit, has more than $4 million in overdue bills, including payroll taxes overdue.

The Texas Health and Human Services Commission on Thursday dropped its contract with the system amid solvency concerns. The Office of Inspector General has begun an investigation into whether funds were mismanaged.

The Herald Democrat reports the system previously spent $200,000 weekly for transit operations. That will drop to about $5,200 per day, with layoffs expected in the 200-person workforce.